Tourism: VAT

(asked on 22nd July 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to extend the reduced rate of VAT for hospitality, holiday accommodation and attractions to (a) travel and (b) holiday letting agencies.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 1st September 2020

In light of the Covid-19 outbreak, the Chancellor has introduced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates at a cost of more than £300 billion.

Property agencies are included in the temporary reduced rate provided that the contract is between the customer and the agent, and that the agent has the power to grant someone a licence to occupy holiday accommodation. Passenger transport for more than 10 people is ordinarily zero-rated for VAT purposes.

Expanding the scope of the temporary VAT reduction would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.

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